According to a statement, the company will use the fresh capital to set up kiosks at 20 more locations across Mumbai. It currently has a presence at five locations in the city. Part of the money will also be earmarked for making senior hires.

Haazri provides tea, filter coffee and fresh snacks at its kiosks. It also supplies flasks of freshly-brewed tea and coffee to offices.

“Haazri’s low capex setup cost will allow them to scale rapidly,” said Anirudh Damani, managing partner at Artha Venture Fund. “It is an ideal candidate to operate as a franchise model.”

Incorporated in 2016, the company was founded by Karan Shinghal, Dhruv Agarwal and Arjun Minda. All three founders studied at The Doon School in Dehradun.

The fund is sponsored by Artha India Ventures and Singularity Holdings, the family offices of former Bombay Stock Exchange directors Ashok Kumar Damani and Ramesh M Damani, and former Reliance Capital investments head Madhusudan Kela, respectively.

It made its first investment in online peer-to-peer lending platform LenDen Club’s pre-Series A round, putting $250,000 into the company.

Artha Venture Fund aims to invest Rs 10-15 crore in each portfolio company, and will reserve 50-60% of the corpus for follow-on investments.